The Big Japanese Power Sharing Story: Pure Fantasy

Bertel Schmitt
by Bertel Schmitt

Remember the story about the rotating power rationing in Japan? One for all, all for one? It appears that it is pure fantasy. On Saturday, The Nikkei [sub] wrote that Japanese automakers are considering running their factories in rotation to help cut the industry’s electricity consumption. The wire service said that “automakers are expected to hold a consultative meeting shortly at the office of the Japan Automobile Manufacturers Association to agree a rotational schedule.” The story had originated on the usually reliable and sometimes uncomfortably persistent Kyodo wire. On Monday, the story grew legs. Automotive News [sub] reported that the electronic industries don’t want to be left behind and demand rotating production holidays between the automotive and electronics industries. It now emerges that it was all wishful thinking.

Today, I called a few members of the Japan Automobile Manufacturers Association to find out how the meeting went and what was decided. All JAMA members contacted said that there was no such meeting. There wasn’t even such a plan.

One industry insider said “I saw the Kyodo story last week. Closing 7-11 on Monday, Family Mart on Tuesday and Lawson’s on Wednesday sounds like a simple idea. The problem is, the car industry isn’t that simple.”

A contact at another JAMA member said: “If anyone should know about this meeting, then it’s me. I don’t know about this meeting.”

All industry sources contacted confirmed that the lack of reliable power is a huge problem. “We can fix our plants. We can give our suppliers the assistance they need,” said an executive at a leading JAMA member. “We wish we could provide our suppliers with power.”

Once the usually hot and humid summer has arrived in Japan, the power problem will be much bigger than now. According to the manufacturers, there is no simple solution in sight, not even a complicated one. All they know is that the power will be scarce and more expensive.

Who would have thought that a lack of electricity will put a big dent into the Japanese, and by extension the world’s auto industry?


Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Cdotson Cdotson on Mar 30, 2011

    I wonder (hope?) if Japan will view rebuilding from this disaster as an opportunity to merge their grids' cycle frequency. Low-voltage 50Hz can be a real PITA for some manufacturers of electromechanical equipment (like the company I work for). Some items just don't like the 50Hz Japanese supply, especially since its voltage window seems to trend to the low side anyway.

  • Geozinger Geozinger on Mar 30, 2011

    I know this is totally OT; but this quote has left me verblufft sein: "One industry insider said “I saw the Kyodo story last week. Closing 7-11 on Monday, Family Mart on Tuesday and Lawson’s on Wednesday sounds like a simple idea. The problem is, the car industry isn’t that simple.” " I haven't heard or seen a mention of Lawson's in at least 25+ years, and I had no idea they had been operating in Japan (and now China!) for a number of years now (thank you Wikipedia). it's hard for me to fathom that a convenience store chain that took root 45 mins away from where I'm from, moved to the Far East and is prospering... Weird...

  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
  • ToolGuy Ford is good at drifting all right... 😉
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